Live media streams are delineated for distributed encoding and fragmentation in a dynamically scalable distributed resource system. In some examples, live MPEG-2 media streams are separated into groups of pictures (GOPs) and converted into jobs for encoding and fragmentation systems. Multiple jobs may be created for the same live media stream to provide for different quality levels for each fragment of each channel. Shared resources such as a pool of dynamically scalable virtual machines can be used to process the individual jobs. Encoded fragments may be H.264 fragments maintained on shared storage. A particular live stream corresponding to a particular quality level can be reconstructed using the encoded fragments.